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Respond to the question: first price sealed auctions with known m?

06/16/2002 08:46 PM by Sungbin Cho; Re:first price sealed auctions with known m?
What do you mean by "knwown market value"? If you have common value case in your mind, then the bidding function is different from that in independent private value case. You can drive symmetric linear bidding schedules(bi=a*si+b*sj)
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05/28/2002 09:46 PM by Brian Stearns; first price sealed auctions with known market value
I understand that in a private value sealed bid auction the unique BNE is Vi/2, where two players participate and the players' valuations are uniformly and independently distributed on [0,1]. But what happens when a market value for the item, such as real estate, exists and is known to the participants? It would seem that this would condense the distribution of valuations, but would if effect the unique BNE? [Manage messages]